RRBs’ net profit hits record Rs 10,176 crore in FY26; business crosses Rs 13.5 lakh crore

New Delhi: Regional Rural Banks (RRBs) reported a sharp improvement in financial performance in 2025-26, with their consolidated net profit rising to an all-time high of Rs 10,176 crore from Rs 6,820 crore in the previous financial year.

A review meeting on the performance of RRBs was held in New Delhi on Tuesday under the chairmanship of the Secretary, Department of Financial Services (DFS), with the Chairman of NABARD, chairpersons of all 28 RRBs and senior officials from DFS, sponsor banks, the Reserve Bank of India and SIDBI in attendance.

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The total business of the 28 RRBs crossed Rs 13.5 lakh crore during FY26, exceeding the business level of some individual public sector banks, according to the DFS.

The improvement in profitability was accompanied by a decline in asset quality indicators. Gross non-performing assets (GNPA) of RRBs fell to an all-time low of 5.3 percent, while net NPA declined to 2.1 percent during FY26.

The 28 RRBs currently operate through 22,273 branches across 26 states and three Union Territories, covering around 700 districts. Their extensive branch network continues to provide banking services to rural and underserved communities.

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RRBs also met all prescribed targets and sub-targets under Priority Sector Lending during FY26. In the financial inclusion segment, the banks opened more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana accounts during the year.

The credit-deposit ratio of RRBs also increased to an all-time high of 75.2 percent in FY26, indicating a higher deployment of deposits as credit across their operating regions.

The DFS Secretary called upon RRBs to accelerate the adoption of modern banking technology and digital delivery of financial services to improve operational efficiency and customer experience. He stressed the need to expand digital banking access in rural and remote areas while ensuring that technology-enabled services reach underserved sections, including the youth.

The Secretary also urged sponsor banks to provide greater support to RRBs, particularly in strengthening their IT infrastructure. Chairpersons of RRBs were asked to take greater initiative in increasing credit flow to sectors relevant to their respective geographies and explore innovative lending avenues.

The government has called for RRBs to sustain the improvement recorded in FY26 and strengthen their role in extending formal banking services and government-sponsored schemes to the last mile.

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